Markets Struggling at Bitcoin Resistance Levels as They Are Focused on Possible US-China Trade Agreement! Here Are the Details

Bitcoin (BTC), has been trading slightly above the $94,000 level earlier this week as global markets shift their attention to the ongoing trade negotiations between the U.S. and China. Investors have adopted a cautious stance due to low liquidity and macroeconomic uncertainty.

While Investors Await Developments in the US-China Trade Agreement, Bitcoin is Trading Above 94,000 Dollars

Following the fluctuations due to customs duties in April, although Bitcoin and XRP have shown recovery recently, analysts indicate that both assets are struggling to gain upward momentum.

LVRG Research director Nick Ruck stated, "Despite Bitcoin's tendency to decouple from the correlation with US stocks, investors may be behaving excessively cautiously towards risky assets like crypto due to the current US macroeconomic environment."

Optimism regarding a potential easing of US-China trade tensions largely shaped the macroeconomic agenda over the weekend. While the Chinese Ministry of Commerce confirmed that it is reviewing the US proposal to resume trade negotiations, former President Donald Trump implied that Beijing is willing to reach an agreement.

Despite these developments, prediction markets continue to be skeptical. According to Polymarket, the likelihood of reaching an agreement by June is only 21%, while the probability of the U.S. reducing tariffs by the end of May is 47.

Markets reacted to uncertainty as the Chinese yuan reached a six-month high of 7.19 against the US dollar, while the New Taiwan Dollar (NTD) surged to 29.6 NTD/USD, the highest level in two years, supported by a foreign capital inflow of $1.4 billion and TSMC’s strong earnings.

BTC Technical Resistance Facing

Bitcoin's sideways course reflects rising technical resistance and the prevailing cautious attitude among traders According to the Glassnode report, BTC is facing significant hurdles in the $93,000-$95,000 range. This range coincides with the short-term holders' cost base and the 111-day moving average.

The report stated, "These levels represent a critical turning point that must be maintained." "If stability cannot be achieved above these levels, the price will return to the consolidation range, and many investors will revert to a significant unrealized loss situation."

Glassnode also stated that when BTC surpasses the resistance of 95,000-98,000 dollars, selling pressure will significantly decrease and the gates will open for price discovery above 100,000 dollars and possibly a new all-time high.